Effective May 1, 2009 a new appraisal process for Bay Area homes went into effect, called the Home Valuation Code of Conduct. This new Code requires a third party service to schedule an appraisal and claims to provide enhanced protections for homebuyers, mortgage investors and the housing market. It used to be when a buyer had an accepted contract on a house, or when a home owner was in the process of a refinance, the lender would call a local appraiser to schedule an appraisal of the home. Now, the lender must call a third party service who will randomly select an appraiser and send them out.
So… What’s the Problem?
Even though this system has been in place for a month, we’ve heard several horror stories so far. Some lenders are farming their appraisals out to out of area appraisers who charge less, but don’t necessarily know the area. Thus, the home may not be accurately assessed by a local professional with local real estate market knowledge and expertise. Also, some lenders have been known to take 12-14 days to get an appraiser out there. When you have a financing contingency of 14 days, it doesn’t give much time to work out any problems that could arise and you (or your client) could lose the house of their dreams.
How Does Our System Ensure You Won’t Experience Any of These Problems?
Our system only orders appraisals from appraisers who meet our strict guidelines for costs and turn times. Plus, we only order appraisals from appraisers who service the property’s zip code, not just county, which eliminates the chance of getting an out of area appraiser who is not familiar with the local real estate market. We also have a department dedicated to expediting reports and reducing costs and turn times.
Want to Make Sure None of These Horror Stories are Your Stories?
Don’t trust your next transaction with a lender who could jeopardize its success. Please give me a call or send me an email to discuss these new regulations and how we can work together to ensure its effects are minimal.
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